Full Breakdown
Trump Expands Most-Favored-Nation Drug Pricing Deals to 26 Companies
9/1/2026, 8:19:47 AM
Core Expansion of MFN Agreements
President Donald Trump announced that nine additional pharmaceutical firms—Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals and UCB—have joined the administration’s most-favored-nation (MFN) pricing framework, bringing the total to 26 companies covering roughly 90 % of the U.S. branded-drug market. The White House projects combined savings of more than $600 billion over the next decade.
Background & Context
The MFN approach ties U.S. drug prices to the lowest prices paid by other OECD nations. Formalized by an executive order in May 2025, the first round of agreements with 17 large manufacturers covered about 86 % of the market. The latest round adds midsize and generic producers, many headquartered abroad. In exchange for offering MFN prices to state Medicaid programs, the companies receive tariff relief and, in some cases, commitments to boost domestic manufacturing and strategic drug reserves.
Data & Statistics
- Companies covered: 26 firms (?90 % of the branded market).
- Projected savings: >$600 billion over ten years (administration estimate).
- Investment commitments: New firms pledged roughly $19.6 billion in U.S. manufacturing, R&D through 2029.
- Drug categories: Treatments for hemophilia, Parkinson’s, macular degeneration, glaucoma, liver disease, cancers and rare diseases.
- Recent price trend: CPI for prescription drugs fell 0.8 % in July, the largest annual decline since 1963.
Official Statements & Responses
President Trump called the expansion a “major step forward” for affordability, noting that MFN pricing forces U.S. payers to match the lowest international rates. HHS Secretary Robert F. Kennedy Jr. said nine-in-10 prescriptions are now covered and described the impact as “dramatic” for medical pricing and public health. The administration emphasized that the agreements protect the MFN framework for new innovative medicines the nine companies bring to market, preventing foreign nations from “free-riding on American innovation.”
CMS Administrator Mehmet Oz was reportedly warned that failure to secure further deals could jeopardize his position, a claim echoed by the president. White House officials have declined to release full agreement terms while urging Congress to codify the MFN framework. They also cite the TrumpRx platform, launched in February, which has generated $700 million in cost savings to date.
Conflicting Reports & Gaps
- Transparency: Pricing formulas and Medicaid discount levels remain undisclosed, limiting assessment of out-of-pocket effects.
- Medicaid baseline: Medicaid already receives the lowest drug prices among U.S. payers, raising questions about incremental benefits.
- Voluntary nature: Companies have not formally endorsed broader drug-pricing legislation and some are exploring legal challenges.
- Impact measurement: Independent analysts have not corroborated the administration’s projected savings, and actual consumer-price reductions are unquantified.
Verbatim Quotes
- “Our most favored nations’ discounts represent the largest reduction in prescription drug prices in the history of our country,” — President Trump
- “Under that most-favored-nation agreement, we now pay the lowest price paid by other countries anywhere in the world,” — President Donald Trump
- “Nine new pharmaceutical companies are committing to deliver their lowest drug prices for American patients,” — President Trump
What’s Next
The White House is pressing Congress to enact legislation that would solidify the MFN pricing model and extend it to the “many hundreds” of remaining drug manufacturers. Officials indicate additional agreements are expected as the policy matures, though timelines and specific company commitments have not been disclosed.
